Agglomeration Economies: The Heterogeneous Contribution of Human Capital and Value Chains

Dario Diodato, Frank Neffke and Neave O'Clery
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Neave O'Clery: Center for International Development at Harvard University

No 81, Growth Lab Working Papers from Harvard's Growth Lab

Abstract: We document the heterogeneity across sectors in the impact labor and input-output links have on industry agglomeration. Exploiting the available degrees of freedom in coagglomeration patterns, we estimate the industry-speci c bene fits of sharing labor needs and supply links with local firms. On aggregate, coagglomeration patterns of services are at least as strongly driven by input-output linkages as those of manufacturing, whereas labor linkages are much more potent drivers of coagglomeration in services than in manufacturing. Moreover, the degree to which labor and input-output linkages are reflected in an industry's coagglomeration patterns is relevant for predicting patterns of city-industry employment growth.

Keywords: Coagglomeration; Marshallian externalities; labor pooling; value chains; manufacturing; services; regional diversi cation (search for similar items in EconPapers)
JEL-codes: J24 O14 R11 (search for similar items in EconPapers)
Date: 2016-08
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Related works:
Working Paper: Agglomeration Economies: The Heterogeneous Contribution of Human Capital and Value Chains (2016)
Working Paper: Agglomeration economies: the heterogeneous contribution of human capital and value chains (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:glh:wpfacu:81

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